Latest Stock Buy or Sell?
Make More Informed Decisions!

Today, Josef Schachter commented about whether TDG-T, BXE-T, SDX-LN, BNP-T, PRQ-T, SDX-LN, TWM-T, PPL-T, STEP-T, BTE-T, CR-T, VET-T, RZE-X, CVE-T, BBI-X, HSE-T, CPG-T, ESN-T, TVE-T, PONY-T, TOU-T are stocks to buy or sell.

COMMENT
A Comment -- General Comments From an Expert

Market. He thinks oil is likely to break below $60 soon. Inventories of gasoline and distillates continues to rise and now we are heading into the end of the gasoline driving season in the US. He expects US demand to drop by 1.0-1.5 million barrels per day as a result. OPEC production continue to increase despite about 150,000 barrel per day decline out of Iran. He expects the TSX Energy index to drop to 160 from 187 today. Trans Mountain pipeline delays, LNG uncertainty and service industry stock hits are all setting things up for a “table pounding” buy opportunity soon – likely in November and December during tax loss selling season. He thinks they will have over 20 companies on their recommended buy list during that time. He prefers natural gas stocks ahead of an expected LNG announcement.

Unknown
COMMENT
Tourmaline Oil Corp

Tourmaline versus Painted Pony. TOU-T is a $5.8 billion company with 22% liquids, moving towards 40% liquids production soon. PONY-T market cap is $438 million. These are apples to oranges. He lies both companies, however, and both are on his recommended list. If we see a further market erosion with tax loss season approaching in November or December, both will likely become a strong buy.

oil / gas
COMMENT

Tourmaline versus Painted Pony. TOU-T is a $5.8 billion company with 22% liquids, moving towards 40% liquids production soon. PONY-T market cap is $438 million. These are apples to oranges. He lies both companies, however, and both are on his recommended list. If we see a further market erosion with tax loss season approaching in November or December, both will likely become a strong buy.

oil / gas
COMMENT

Energy or Cannabis? If a general stock market correction occurs and cannabis stocks take a hit due to margin collapse, investors may run from volatility of the cannabis stocks. He thinks energy still needs to earn its place first, with fresh buying back from investors (which he expects following the tax loss selling season in November or December). He expects another bull market for oil and natural gas in the next few years – WTI back to $100 and AECO at $4.00/GJ.

Unknown
HOLD

Their volumes continue to grow, especially into light oils in the Viking and Cardium areas. The company’s book value is $3.21 per share. The balance sheet is in good shape, with only 20% debt.

oil / gas
BUY

It has only $19 million of debt and has a book value of $1.15. He thinks the stock is a buy here. It is one of the country’s largest coiled tubing company. He has a 12 month price target of $1.20. He will like be strongly recommending it during the tax season loss selling period November or December.

oil / gas
HOLD

The company announced they want to pay off $1 billion in debt. They will likely sell 50,000 bpd of production – most in the Bakken. Book value is $16.32 per share. Management is talking about focusing on core assets and a 17% reduction in employees. Selling pressure is high as it is being removed from a couple of small cap indices. He thinks this is overdone – he would not be a seller here. The stock is pushing a 5% yield.

oil / gas
BUY
Husky Energy

They recently raised the dividend and the balance sheet is good. Sales of natural gas in China are strong. The balance sheet is good and book value is $18.72 per share. Over 30% of their revenue comes from international markets. He sees better opportunities out there, but views this as a good stock for conservative investors.

oil / gas
BUY ON WEAKNESS

He likes this company and it is on his coverage list. He is holding off buying for now as he expects even better value during the seasonal tax loss selling season in November and December. They did 1270 boed with liquids rich Montney holdings. He sees them getting near 8-10,000 boed as new infrastructure is tied in. He has a $0.72 per share target in the next 12 months.

Energy
DON'T BUY
Cenovus Energy

The company has over $9 billion of debt against $19 billion of equity. He would stay away. Heavy oil differentials are problematic. Book value is $15 per share. He thinks the stock is susceptible to further selling pressure as oil prices are expected to drop below $60 soon on a seasonal basis.

oil / gas
BUY ON WEAKNESS
Razor Energy Corp

He covers this small cap company. It only has a $49 million market cap. This company does a lot of well recompletions, where there have been historically low recovery rates. He likes the company and management team. He has a target of $3.50 for the shares. Anytime it trades down on weakness it is a buy.

Energy
BUY ON WEAKNESS

He likes this company and began coverage in August. It has a book value of $17.39 per share. Debt is $1.6 billion versus equity of $2.7 billion of debt. He has cash flow of $5.58 per share. The dividend is paid monthly and has been raised. When the yield gets to 7% it becomes a “table pounding” buy. Yield 6%. (Analysts’ price target is $57)

oil / gas
BUY
Crew Energy Inc.

The book value is $5.74. The balance sheet is not a problem. They have growing production to 23,583 boed. They have $0.14 per share in cash flow. He thinks this could rise to over $1.00 per share in the next few years.

oil / gas
DON'T BUY
Baytex Energy Corp

When this stock was $6 he was not a fan and still is not. The company will soon rise to 60% debt on the balance sheet. Baytex taking over Raging River does not seem to make sense to shareholders, in his opinion. He thinks they may be over paying and shareholders will not be in a controlling position. He also thinks operating costs are still too high.

oil / gas
BUY ON WEAKNESS

He thinks it is pretty cheap right now. The company made an acquisition in Oklahoma giving them more fracing assets, which he likes. Investors are a little concerned about infrastructure capacity constraints in the Permian. He has a 12 month target price of $15 and is looking for an entry in this soon.

Energy